SENATE TAX-CUT ROLLBACK NOT SUPPORTED IN HOUSE

Yesterday the Senate narrowly approved reversing income tax-cuts passed by the legislature in 1998. The nineteen House Republicans stand in staunch opposition to what is essentially a tax increase and a disregard for the promise made to Hawaii's taxpayers. The four-year incremental decrease went into affect last year and should lower the percentage of state income tax paid by all taxpayers over the next two years.

"The bill should not even have a hearing," said Charles Djou, House Republican Finance Committee member. "We will not support it, the governor said he will veto it, and even many House Democrats don't support it."

Republicans said it would be a waste of time to hear the bill, and the House needs to be working to find solutions, not reneging on a promise to the public.

"We need to understand that government is too big, and we need to work on reshaping what we do and how to do it better," said Djou. "One of the ways government can provide funds for pay raises is through savings realized by privatizing."

Republicans have endorsed reducing the number of special funds that proliferate the government bureaucracy.

"There are several hundred special funds that, in effect, remove half the budget from legislative scrutiny, and that should be addressed," said Djou.

Supporters of the rollback in the Senate say this additional tax revenue is needed for teacher pay raises, but House Republicans say that the State first has an obligation to teachers and all Hawaii to follow through with the relief promised three years ago. With a well-balanced budget, we can still find money for teacher pay raises.

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